Capitalization of expenses

If hard disk is capable of improving the capacity of the system then it should be capitalised....else it is just another repais and maintenence and should be charged to revenue...

Is ur query cleared???

the basic function of Hard Disk is it increases the storing capacity of the System and in return i think it increases the eficiency of the system.

so may be it should be capitalized, still Confused!!!!!!

Yes u r correct.....

Any expenditure that increases the efficiency of an asset should always be capitalised...

hard is categorised under computer peripherals subject to depreciation @ 60% uner icome tax act..accordingly it should be capitalised